Home Buyer’s Checklist
6 Tips to Help You Navigate the New York City Purchase Process
Buying a home in New York City can be overwhelming and stressful. I know this because I’ve helped many buyers navigate the purchase process and have also gone through the process myself. Unless you hire me, I can’t help you through every single twist and turn that will arise. I do hope though that this home buyer’s checklist, filled with tips and suggestions, proves helpful when the time comes to purchase your next home:
1. Well, how much do you want to spend?
Wait, I know this isn’t a tip. Do you find it odd that this is the first item on the checklist? Well don’t. It's the most vital part of the purchase process. Until Bitcoin takes over the Dollar, cash (yours or the banks) is what’s needed to purchase a home in New York City. Even as an all cash buyer, there's more to envision than just mortgage and common charges (coops have maintenance). Don’t forget to consider the closing costs that can begin north of $20,000. What about the after closing costs such as moving in /moving out fees you may incur? Are you going to purchase new furniture? Who’s going to move it? Planning on doing any minor renovations to your new crib? Think through your priorities when setting your price range. Of course, the major amount of cash involved here will be coming from the bank and that transitions nicely into item number two…
2. Find a mortgage banker/ broker and get pre-approved before you start searching.
If you are an all-cash buyer, first, can you adopt me? Second, feel free to skip this portion. There's a start to every purchased home that begins with contacting a mortgage broker/banker who can tell you what you can afford. Why do you need to speak to someone before you start searching? Why did I write before in bold twice? Okay, three times? To not waste time in a competitive market. Again, don’t waste your time in a competitive market. Window shopping is fun and all, but you'll most likely end up realizing the home is gone by the time you are pre-approved and decide to make an offer. If you need to speak with a mortgage broker or banker (yes two separate things) I'd be happy to recommend top professionals I've worked with for many years. Though, remember, just because the bank is willing to provide you with “fill an outrageous amount of numbers” dollars, doesn’t mean you should spend the max.
3. Hunters Point vs Court Square vs Queensboro Plaza?
You may have an idea what neighborhoods you want to live in but what are your main reasons for choosing that area? Take into consideration proximity to public transportation or if you drive, highways & bridges. Is distance to restaurants and a lively night scene important? Or would you rather live in an area surround by quiet low rise buildings? What about Price Per Square Foot ($PSF)? Do you want to be near a certain school? You don’t just marry the home, you marry the whole neighborhood, so make sure it’s a good fit for you and your family’s lifestyle.
4. Create a list of must-haves and nice-to-haves.
With the amount of hi-rise buildings in Long Island City already built and those coming in the next few years, you will come across a multitude of amenity features. Do you really NEED to live in a building with a doorman or concierge? What about a building that has a parking garage or gym? Pet friendly building? Do you want to live in a hi-rise? Since the majority of buildings in Long Island City are condos you'll also want to consider the investment portion of your purchase. Think about where your life may be ten years from now and how what you choose will impact your future sale or rental. Make sure you know what you’re willing to compromise on, what you’re not, and where you and your significant other disagree.
5. Get your attorney lined up.
I totally agree that technology has added a great amount of information to help you find a home and therefore making both buyer and seller more informed. That’s great! But you still don’t want to hire a real estate agent to help you with the purchase process. Just don’t wait until the last minute to hire an attorney. Please, dear almighty God please have your attorney lined up before you plan to make an offer! Also, don’t hire an attorney off the yellow pages. Wait did I just date myself? Okay, then don’t just (insert your favorite search engine) search one up. When you get some recommendations please interview them as if you were hiring for a new job position. Everyone has a cousin or friend that is a lawyer, so ask around to get some contacts. But, and a big but...when deciding on which lawyer to hire, PLEASE make sure the lawyer specializes in real estate transactions in New York City. There have been countless deals that turned for the worse just because the attorney was inexperienced in the New York City purchase process and was hired solely on the fact that they are a family friend or ever worse a family member. Need a few great recommendations? Contact me @TheAndresSoto .
6. Setting expectations on your purchasing timeline
There are many different variables that play during the purchase process. Most of these are out of your control, so it’s important to understand how long the entire process could take. One time consuming portion is obtaining financing. Unless you are an all cash buyer (again why haven’t you adopted me yet) having your bank approve the apartment and yourself for a loan could take anywhere from 2 to 4 weeks. This portion happens after your offer is accepted and the contract has been signed (1-2 week time frame). Overall, the entire purchase process (and I’m talking about from searching to moving in) could take anywhere from 1 – 6 months. So it’s best to set your expectations ahead of time.
6A Bonus Tip: Working with a real estate agent (two thumbs pointing to me @TheAndresSoto can help speed this process.
There are many other topics I did not mention that a buyer can prepare for. No two real estate transactions are alike. And like I said earlier, I’ve been on the purchasing end myself so I can understand how frustrating the process may seem. Hopefully these 6 tips have helped you somehow. If not, or if you have any other thoughts, ideas or questions feel free to comment below.
No comments:
Post a Comment